MicroVision, Inc.

Good afternoon and welcome to the Microvision fourth quarter and full year 2020 financial and operating results call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your touchtone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Lindsay Stibbard. Please go ahead.

Thank you. Good afternoon and welcome, everyone, to Microvision's fourth quarter and full year 2020 Financial and Operating Results Conference Call. Joining me on today's call are Sumit Sharma, Chief Executive Officer, and Steve Holt, Chief Financial Officer. The information in today's conference call includes forward-looking statements, including statements regarding exploration of strategic alternatives, sale of our product verticals or technology, sale or merger of the company, or completing any such strategic transaction, maximizing shareholder value, managing costs, expected customer orders, future royalties, progress under and benefits of existing contracts and license agreements, and the negotiation of future agreements, customer product launches, advantages of our technology, litigation, business execution, projections of future operations and financial results, availability of funds, product development applications and benefits, availability and supply of products and key components, commercialization of our technology, market opportunities, and future demand, as well as statements containing words like opportunity, potential, possibly, intend, believe, goals, paths, expects, plans, will, could, would, likely, and other similar expressions. These statements are not guarantees of future performance. Actual results could differ materially from the future results implied or expressed in the forward-looking statements. We encourage you to review our various SEC filings, including our annual report on Form 10-K, filed on March 12, 2020, and Form 10-Q filed on October 30, 2020, as well as various other SEC filings made from time to time in which we discuss risk factors associated with investing in microvision. These risk factors could cause results to differ materially from those implied or expressed in our forward-looking statements. All forward-looking statements are made as of the date of this call, and except as required by law, we undertake no obligation to update this information. The financial numbers presented on the call today are included in our press release and in the 8-K file today. Both are available from the Investor Relations section of our website. This conference call will also be available for audio replay in the Investor Relations section of Microvision's website at www.microvision.com. And now I'd like to turn the call over to Sumit Sharma. Sumit?

Thank you, Lindsay. Good afternoon, everyone. As we look back at 2020, I see it as a defining year for us. A year ago, we faced a very challenging business environment and global outlook. Despite this, we made important progress that allowed us to stabilize the company for 2021 and positioned us to advance our technology while pursuing strategic alternatives. I would like to start by thanking our employees for the dedication, creativity, innovation, and execution. The potential value of this work is just starting to come into focus as the market segment in advanced driver safety and autonomous driving sees established multinational technology companies, software companies focused on delivering mobility as a service, and traditional automotive OEMs and tier one companies start to invest in and engage in preparation for this emerging market. I would also like to thank our shareholders for their support that allows us to focus on obtaining the right value while exploring strategic alternatives, including a possible sale of the company. This support has enabled us to have a stronger balance sheet as we continue evaluating our options while we work to complete our long-range LiDAR sample, which we expect to be best in class. I will expand on this a bit later in this call. Stronger Balance Sheet allows us to add staff that we believe increases the value of our company for potential strategic partners, as well as reduces risk to our 2021 development goals. I expect us to continue adding key staff through 2021 to enhance our ability to demonstrate to the market and potential strategic partners two sustainable strategic advantages of our technology. First, the ability to deliver a high-performance, long-range LiDAR sensor that is designed to meet or exceed current OEM requirements. And second, scalability of our sensor to support future price targets. Over the last 12 months, we also welcomed three new board members to our board of directors with considerable expertise in automotive and augmented reality market segments. I believe adding these new expertise An insight to our current board to augment existing expertise in business, including expertise in mergers and acquisitions, strengthens our ability to create value for our shareholders. Over the past few decades, we have leveraged our strengths to solve some of the toughest technical problems anticipated by multinational OEMs as they look to new market opportunities using laser beam scanning technology. In our augmented reality interactive display, and consumer LiDAR product verticals, we pioneered scalable solutions that we believe are far ahead of global competitors. The impact and value of what we achieved was hard to measure since there were no competitive solutions for these verticals. Our automotive LiDAR product addresses an emerging market segment that has the potential to impact millions of lives in mobility and safety with potentially billions of dollars of sensor, and vehicle sales for OEMs and multinational technology companies over coming decades. I believe this market demand represents a great opportunity for MicroVision to showcase our competitive advantage of high performance and scalability. We expect our long-range LiDAR sensor to demonstrate what we believe will be the high performance required for advanced driver assistance systems and autonomous driving. This performance is calibrated to meet current OEM requirements and would include range of up to 250 meters and beyond, a high-resolution point clock with up to 10.8 million points per second from a single return, object velocities relative to ego vehicle from a time-of-flight LIDAR, low latency, intensity, inertial output, and interference immunity from sunlight and other LIDARs. With such capabilities in our first potential product, we believe a future product could then include a LiDAR and a camera module combined in a single sensor. We expect such a future product could reduce the number of sensors required per vehicle to achieve features for advanced safety and autonomous driving. This improvement in cost per vehicle could support faster adoption. We believe our capability to demonstrate scale is important in this segment. We have successfully demonstrated our solid state technology to achieve scale over more than a decade. Our custom MEMS and ASICs scale from 200 millimeter wafer technology, where we have successfully delivered products for OEM programs. Our LiDAR is based on 905 nanometer laser diode technology that is currently available and is the plan of record for anchor technology companies. Additional innovations in injection-molded free-form plastic optics and multi-axis active alignment automation, automated testing, and closed-loop control algorithms, among others, have prepared us to show scalability from our pilot line. As I mentioned in our call last October regarding our eight-sample timing, we expect the hardware for demonstration along with select benchmark data from our development platform will be available to interested parties in the April timeframe, followed by continued benchmarking and testing. I also expect that a version of our solid-state long-range LiDAR sensor could be available for sale in small quantities in Q3 or Q4 this year. Our solid-state long-range LiDAR sensor could enable any interested party to perform testing with our sensor on their moving platforms such as cars and long haul trucks. This is important because we believe scalability being a key strategic advantage of our technology needs to be demonstrated to help realize value for our shareholders. Also, we expect to establish a pilot line with appropriate capacity to demonstrate scalability as we have done over the last decade for multinational technology partners. Let me be specific on this. Our capabilities include delivering process maps, control plans, supply chain partnerships, automation, and product integrity qualification for high yield design that can ramp. We have confidence in our ability to scale our sensor from our pilot line. In addition to our automotive LIDAR vertical, we believe we remain well positioned in augmented reality, interactive display, and consumer LIDAR product verticals for strategic alternatives. The impact of the global pandemic on consumer devices in these segments is evolving as is clarity about opportunities from OEMs focused in these markets. In conclusion, we remain committed to exploring strategic alternatives, including a potential sale of the company in part or whole to maximize value for our shareholders. I believe with our advanced technology and continued dedication of our employees, our vision on products and markets, and strength of our balance sheet, we can deliver a scalable, best-in-class, long-range LiDAR sensor. I am profoundly optimistic about our path forward. Finally, today the company announced that David Westgore will retire from Microvision. David has been a key contributor for over 15 years. He is stepping down from his current role, but will be available to support the transition to a new general counsel. As he approaches his 68th birthday, he feels it is time to look to his planned retirement and enjoy the time with family, with the company on a solid path forward. On behalf of our employees and shareholders, I would like to thank David for his dedication and service to Microvision. I will miss our time together and his counsel, and I wish him a wonderful retirement. Now let me turn over the call to Steve to discuss the fourth quarter and full year results. Steve?